TransNamib confirms N$2.6bn loans

TransNamib yesterday announced it has successfully met all conditions to access secured funding of N$2.6 billion from the Development Bank of Namibia and the Development Bank of Southern Africa. This financial boost will enable the company to address its locomotive capacity challenges effectively, the state-owned company said.

With this funding, TransNamib will initiate the process to enhance its locomotive fleet. CEO Desmond Van Jaarsveld elaborated on the utilisation of the loan facility: “The conditions of the loan stipulate that the funds must be strictly used to increase our capacity. For years, we have been transparent about the challenges posed by our outdated equipment. This loan will not only enable us to increase our capacity, but also address safety concerns related to our aged equipment".

The procurement of the new locomotives will commence soon, with an anticipated lead time of 24 months, he said in a statement. Specifically, the loan will be used for the remanufacturing of rolling stock, acquisition of new rolling stock, modernisation of the TransNamib workshop and upgrading of signalling equipment, including spares and associated equipment, the company announced.